Considerable concern surrounded the export potential for U.S. distiller’s dried grains with solubles (DDGS) following an adverse trade policy decision by Vietnam, a historic top buyer, in December 2016. Instead, other countries in the region increased DDGS purchasing, the Vietnamese market re-opened and the region set a new record at 2.3 million metric tons in DDGS imports in 2016/2017.
Representatives from the U.S. Grains Council (USGC) recently traveled to Indonesia and Thailand to visit with ministry and industry officials there and gain a better understanding of the opportunities for and challenges to expanded ethanol use in both markets.
U.S. exports of distiller’s dried grains with solubles (DDGS) to Southeast Asia have increased 16 percent so far this marketing year, according to data from the U.S. Department of Agriculture (USDA) and analysis by the U.S. Grains Council (USGC).
The United States and New Zealand last week requested the World Trade Organization (WTO) establish a dispute settlement panel to examine Indonesia’s restrictions on several categories of agricultural imports. This action follows the failure of bilateral consultations over the last three years to find a solution. U.S. horticultural and animal products are primarily affected by Indonesia’s challenged practices.
Southeast Asia's imports of U.S. corn gluten meal (CGM) has swelled this past year by 47 percent, nearly reaching 400,000 metric tons. This is a vital market for U.S. CGM with three of the top 10 U.S. export markets located in the region.
Indonesia alone, the largest overall market, accounted for 25 percent of the U.S. export market, importing more than 256,000 tons of CGM in 2013, valued at $176 million—a 36 percent increase from 2012. This record level of U.S. CGM imports was driven by a large demand for a high-quality protein source from Indonesia's poultry industry.
- Largest importer of CGM in the world. 148 TMT from U.S.
The U.S. Grains Council held a set of regional two-day workshops, titled, "Advanced Information on Nutrition and Technology", in Indonesia and Thailand earlier this month. More than 100 poultry, swine and feed company representatives attended from Thailand, Indonesia, Vietnam and Philippines.
Thanks in large part to the U.S. government's Market Access Program (MAP) and Foreign Market Development (FMD) program, approximately 775,000 metric tons of U.S. agricultural products, valued at more than $267 million, were sold and or negotiated at the 7th Southeast Asia Grain Transportation Conference.
One of the largest animal feed manufacturers in Indonesia found Export Exchange 2012 and an accompanying trade mission organized by the U.S. Grains Council beneficial for his business and a great source of contacts for future U.S. purchases.
"We had an eye opening tour," said Arief Widjaja of Japfa Comfeed in Indonesia. Widjaja was part of a team from Indonesia and Southeast Asia that visited a farm to learn how feed grains are produced and handled before moving through a transloading facility and export terminal.
By Adel Yusupov, U.S. Grains Council Regional Director for South East Asia